Inflation in Argentina soared by more than 100% last month, as the South American nation struggles with a years long economic crisis that has only worsened amidst deteriorating global macroeconomic conditions.
The country’s National Institute for Statistics and Census (INDEC) last week reported that prices rose by another 7.7% in March, amounting to a staggering 104.3% year-over-year increase— the highest inflation since 1991. Economists polled by Bloomberg forecast a monthly gain of 7%.
February’s inflation rose 102.5% as prices for most consumer goods and services jumped by more than double from one year ago. The highest contributor to last month’s jaw-dropping inflation increase was the cost of education, which rose 29.1% as students started a new school year.
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Prices of meat, as well as dairy products and eggs were up 9.4% and 9.3%, respectively last month, while chicken skyrocketed by more than 25% thanks to a recent outbreak of the avian flu. Argentina has been grappling with the highest inflation rate amongst South American countries, after a number of economic policies consecutively failed to contain out-of-control prices.
Within a span of four weeks, three economic ministers came and left, as Argentina’s economic crisis worsened considerably. In December, the IMF agreed to provide another $6 billion bailout, bringing the struggling nation’s total aid package close to $44 billion.
Information for this briefing was found via the INDEC and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
